- Investors take advantage of the lower purchasing price amongst technology company stocks. The NASDAQ recovers and trades closer to previous highs.
- Apple, Amazon, and Meta earnings beat Wall Street’s expectations. Apple falls 2.92%, Amazon rises 7.11% and Meta trades more than 15% higher.
- Apple revenue rises for the first time in over 12-months. Nonetheless, investors still sold shares as the company confirmed they are encountering difficulty in China, one of their largest markets. China previously has accounted for up to 25% of Apple’s revenue.
- Analysts expect the US Unemployment Rate to rise from 3.7% to 3.8% and for the NFP Employment Change to read 188,000.
USA500 – Earnings Push the USA500 to All-Time Highs
The USA500 was the best performing index on Thursday increasing in value by 1.25% and rising to a new all-time high. Technical analysis currently continues to indicate upward price movement. The asset trades above moving averages, above the Volume Weighted Average Price and oscillators continue to indicate buyers are controlling the market. The only concern for investors is the previous resistance level and if demand will decline at such a high price.
The price this morning trades within a price range between $4,937.90 and $4,928.87. If the price breaks above this level the assets’ buy signals can potentially strengthen. The upward price movement is supported by company earnings data. Apple, Amazon and Meta easily beat earnings and revenue data. Apple was the only stock which saw a decline after earnings due to negative data from China, its second most important market. Meta and Amazon on the other hand saw a significant rise in demand.
The Unemployment Rate is expected to increase from 3.7% to 3.8% and the Average Hourly Earnings to decrease from 0.4% to 0.3%. The Nonfarm Payrolls may also decrease from 216,000 to 188,000. According to analysts, the ideal release would be slightly weaker figures but not weak enough to indicate harsher economic conditions. Though weaker data can prompt the Fed to consider a rate cut earlier. However, higher and stronger employment data can temporarily pressure the stock market as it supports rates remaining higher for longer.
Important earnings reports will continue today and on Monday for the USA500. This morning ExxonMobil and Chevron will announce their earnings. Over the past month, neither stock has seen any significant bullish price movement. On Monday, McDonald’s and Caterpillar will announce their earnings. Both stocks are trading slightly higher in 2024.
GBPUSD – Bank of England Member Votes for Rate Cut!
The price of the British Pound rose in value against the currency market as a whole and the US Dollar Index moderately fell. During yesterday’s session the Cable rose 0.46% and is also trading higher this morning. However, investors should be cautious of upward price movements as the Bank of England were deemed to be more dovish than their global partners.
The Bank of England has a Monetary Policy Committee made up of 9 members. None of the nine members have ever voted for a rate cut in the past 4 years, until now. Only 2 members of the committee voted for a hike, which is lower than previous months. 6 voted for a pause and 1 voted for a rate cut. Additionally, the Governor of the central bank also said the regulator would consider a rate cut later in the year.
Lastly, investors will have their attention fixed on this afternoon’s upcoming economic releases across the Atlantic. If the US employment data and Consumer Sentiment read stronger than expectations, the Dollar can potentially attempt a correction.
Michalis Efthymiou
Market Analyst
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Breaking Records: S&P500 Hits New Highs! What’s Next for Investors with Upcoming US Data
The S&P500 has been making headlines recently as it continues to break records and reach new all-time highs. This news has piqued the interest of investors all over the world, and many are wondering what’s next for the US stock market and how they can navigate this upward trend. As we head into the second half of 2021, there are several factors that could impact the S&P500’s performance, including upcoming US data releases. In this article, we will discuss the recent highs of the S&P500, what may have caused this surge, and what investors should keep an eye out for in the coming weeks.
Understanding the S&P500’s Record-Breaking Rise
The S&P500 is a stock market index that measures the performance of 500 large companies listed on stock exchanges in the United States. It represents the overall health and performance of the US stock market, making it a significant indicator for investors. In the first half of 2021, the S&P500 has been on a steady upward trend, reaching new record highs multiple times. In June alone, the S&P500 hit new highs 17 times, an impressive feat considering the ongoing effects of the pandemic.
The record-breaking rise of the S&P500 can be attributed to several factors. Firstly, the US economy has been recovering from the impacts of the COVID-19 pandemic, with more businesses reopening and consumer spending increasing. This has led to a rise in corporate profits, boosting investor confidence in the stock market. Additionally, the Federal Reserve’s accommodative monetary policy, including low-interest rates and bond-buying, has provided a significant boost to the stock market.
The Role of Upcoming US Data in S&P500’s Future Performance
While the S&P500 has had a strong first half of 2021, there are still potential challenges ahead that could impact its future performance. One of these potential challenges is the upcoming US data releases, which are important indicators of the overall state of the economy. Investors should pay close attention to these data releases as they could influence market sentiment and market movements.
One of the most highly anticipated data releases is the US jobs report, which is released monthly and provides key insights into the state of the labor market. The next report is scheduled for release on July 2nd, and investors will be closely watching for any signs of improvement or decline in employment numbers. A positive report could further boost investor confidence in the economy and contribute to the S&P500’s upward trend.
The retail sales report, which measures the total retail sales in the US, is another crucial data release that investors should keep an eye on. The report for May showed a decrease in retail sales, causing some concern among investors. The June report, scheduled for release on July 16th, could provide insights into whether this was a one-time decline or a concerning trend. A strong retail sales report could be a good sign for the economy and the S&P500’s performance.
Other data releases that could impact the S&P500 include the GDP report, the consumer price index (CPI), and the purchasing managers’ index (PMI). These reports provide valuable information about the economy’s health and could influence investor sentiment. It is essential for investors to stay informed about these upcoming data releases and understand how they may affect the stock market.
Practical Tips for Investors
With the S&P500 reaching new highs and upcoming US data releases, investors may be wondering what actions they can take to make the most of this situation. Here are some practical tips for investors to consider:
1. Diversify your portfolio: It is always important to have a well-diversified portfolio that includes a mix of stocks, bonds, and other assets. This can help mitigate risks in case of any unexpected market movements.
2. Monitor the market: Keep a close eye on the market, especially around the time of US data releases. Understanding market sentiment can help you make informed decisions about your investments.
3. Stay updated: Stay up to date with the latest news and updates, especially regarding economic data and company earnings reports. This can help you make timely investment decisions.
4. Consult a financial advisor: If you are unsure about how to navigate the current market conditions, consider seeking the advice of a professional financial advisor. They can provide personalized guidance based on your financial goals and risk tolerance.
Final Thoughts
The S&P500’s rise to new highs is exciting news for investors, but it is essential to stay informed and prepared for potential challenges that may arise. Upcoming US data releases can provide valuable insights into the economy’s health and impact market sentiment. By diversifying your portfolio, staying updated, and consulting a financial advisor, you can make informed investment decisions that align with your financial goals. The stock market is always subject to volatility, so it is crucial to approach it with a long-term strategy and a diversified portfolio.
